Bonds in Kent, OH
As a business, you must be steadfast in considering various risks and exposures that could threaten your prospects. Your company relies on financial stability and a positive reputation to ensure future growth and opportunities, but as you work with clients and other parties, you may eventually encounter hardships. That’s where bonds can be valuable assets, potentially shielding you from the fiscal ramifications of errors or accidents.
What Are Bonds? 
Bonds can come in many forms, but in the business world, their general purpose is to provide financial reassurance to parties involved in projects and contracts. Alongside insurance, bonds can form the core of your business’s risk management and loss control efforts.
What Is a Commercial Bond?
Commercial bonds, also known as business bonds, may be required for certain companies to conduct business in specified areas. By purchasing the appropriate products, you can ensure compliance with state and local authorities while also providing clients, the general public and others with whom you do business with financial security and peace of mind.
What Are the Types of Commercial Bonds?
Common types of commercial bonds may include the following:
- Auto dealer bonds
- Auctioneer bonds
- Mortgage broker bonds
- License and permit bonds
- Utility bonds
- Public official bonds
- Liquor bonds
What Is the Difference Between Surety and Fidelity Bonds?
Many common bonds may fall into the categories of surety bonds and fidelity bonds. These products generally function as follows:
- Surety bonds establish a means of compensation for your clients and customers should you default on your duties.
- Fidelity bonds can ensure other parties can recoup their losses if you or your employees commit criminal, fraudulent or dishonest acts.
We’re Here to Help
Contact Advantage Insurance Agency today to learn more about bonds.